NCN’s 2009 financials released…Audit Office unable to determine what entity owned
Government has released the 2009 financial statements of the National Communications Network (NCN) and is indicating that state auditors were unable to determine the accuracy of the assets of that entity. NCN raked in over $455M in revenues that year. The company also benefitted from some $54M in subvention from Government.
Martin Goolsarran
The report, prepared by the Audit Office, also confirmed that poor records-keeping made it impossible for auditors to determine what exactly NCN owned as the management failed to implement and maintain a master and sectional inventory during 2009.
It also spoke of millions of dollars being outstanding from advertisers and others for a number of years.
Auditor General Deodat Sharma, as a result, issued a qualified opinion “arising from limitation in scope and uncertainty”.
The 2009 accounts of NCN, which operates the country’s only authorized radio stations and the state-owned television stations, including NCN Channel 11, said that revenue from advertising was almost $201M.
The revenue, inclusive from NCN’s Linden and Berbice locations, also came from sponsored movies, news, other programmes, sports, production and deaths and messages. Almost $41M was paid to entities like CMC and Stabroek TV.
Mohamed Sattaur
Wages and salaries for NCN were almost $160M in 2009 with $83.6M allotted for utility charges. Its total operating expenses were listed as $412.8M. At the end of 2009, NCN’s net worth was some $727M.
The report from the state auditors would confirm that all seems not to be right at NCN which earlier this year ran into an angry Parliamentary opposition which could not understand how NCN wanted state money when it made more than $500M last year. There are questions about where the monies went.
NCN came under the spotlight this year after allegations of fraud prompted the Board of Directors, headed by Dr. Prem Misir, to launch an investigation into payments to the entity for the Jingle and Song Competition hosted by
Guyana Telephone and Telegraph Company (GT&T) last year.
NCN was hired by GT&T to record and produce the popular show last year. However, acting on information, the NCN Board launched a probe and discovered that Programme Manager,
Martin Goolsarran, collected almost $4M and placed it in his personal bank account. There was also no written contract.
There were several other breaches discovered in the probe conducted by an independent auditor which led to Chief Executive Officer, Mohamed Sattaur, resigning. Goolsarran has been sent on suspension since June.
Prem Misir
During the probe, evidence had emerged that both Goolsarran and Sattaur allegedly pressured staffers to falsify documents, backdating them to fool the auditors. There were other indications of records deliberately being poorly kept. The NCN affair had proven to be a major embarrassment for the administration with questions also, whether criminal charges will likely be laid.
On Wednesday, Cabinet Secretary Dr. Roger Luncheon said that Government is not likely to order a wider probe into the affairs of the NCN unless the Auditor General demands it.
A report by NCN’s Board of Director pertaining to an internal probe has been completed and is with President Donald Ramotar, who is the Minister of Information.